Microsoft Looking to Pursue Open Partnerships with OpenAI

Microsoft and OpenAI have had another close relationship, with the former donating billions to start an AI lab in return for access to advanced models now baked into Microsoft’s productivity software. The two companies have been heading in different directions, however, and Reuters it was reported today that Microsoft wants to add other models to its 365 Copilot products that are not built with OpenAI.

The idea, according to the report, is that Microsoft sees OpenAI’s flagship GPT-4 model as too expensive and too slow to satisfy its customers. Copilot 365 is an AI-powered assistant built into Microsoft’s suite of product applications including Word and PowerPoint. The tool is supposed to swallow all the company’s data and do a lot of things, like giving users access to information without the need to search for different programs; quickly generate a list of the most profitable business units; or summarize meetings and emails at the same time.

It is so they deserve it to do those things, but customers and insiders alike are still frustrated with Copilot 365, which costs an extra $30 per month per user in the group. Recently Business Insider storyMicrosoft employees anonymously call the tools “scary” and “gimmicky,” and they don’t work 75% of the time. In front of the customer, Business Insider cited a survey of 123 IT leaders published by management analyst Gartner, which found only four said Copilot provided significant value to their companies. It should be noted that some stories have been about companies that have benefited from using major languages, such as simplifying customer support.

Some customers they spoke to Business Insider in particular they found the 365 Copilot to be very expensive.

OpenAI’s ChatGPT is a limited, general model, meaning it is trained on many devices and can be expensive and slow to run; This is why many models are offered in “lite” versions that are more interesting or “thinking.” Microsoft has been training its own in-house, small models like the so-called Phi-4, and Reuters reports speaking to the outlet say the company wants to “replace some heavy duty models to make 365 Copilot faster and more efficient.”

In other words, it makes sense that Microsoft wants to reduce its reliance on OpenAI. If the company is right and AI is going to be the next revolution in computing, relying on an independent company for a middle-of-the-road technology is not a good idea.

Microsoft has plowed billions of dollars into OpenAI and will receive it 75% of his profit until it breaks even in its economy, and even then it will still have a large share in the cause. The company starts hedging its bets – creating its own internal models and holding a lottery ticket to OpenAI if it continues on its path to space.

Despite being at the forefront today, some OpenAI skeptics say that we may not know the real winner in the AI ​​race (if these technologies are supposed to be as revolutionary as we are told to believe). So there were many search engines that came to the Internet in the 90s, which quickly became popular when the late Google appeared. Microsoft would be wise to hide it.